﻿This thesis explores the system of making collective contracts in China based on
regions, above the level of the enterprise.
Since 1978, the market reform in China has significant influences on the
political-economic environment in which China's labour relations take place, and the
result has been a major transformation in the latter. A key issue for labour relations in
China is how to regulate labour relations effectively and maintain a stable
relationship between employee and employer. Due to the inherent limitations in
individual forms of labour regulation, there has been recognition of the need for the
regulation of collective labour relations to function more effectively. In recent years,
regional collective contract/ consultation system has been promoted to supplement
the existing system based at the level of the enterprise.
This thesis examines the new regulatory mechanism of regional collective
contract system from field work in two of the key cities where this form of
agreement is being developed, and uses case studies of regional level collective
contracts, supplemented by qualitative interviews, statistics and documents from the
district, municipal and national levels.
This thesis reviews the development of the regional collective contract system,
both from the formal provisions and the practice, and demonstrates the operation of
this system from the parties, the processes and the outcome. By explaining the
dynamics of the regional collective contract system, this thesis further investigated
the efficacy of the system based on a pivotal question as to whether the regional
collective contract is reached through negotiation?
Locating the regional collective contract system within the regulatory framework of labour relations in China, this thesis has some significant findings. While the
formal provisions are increasingly supportive to the regional system, the primary
focus still remains on the enterprise level. The ambiguities and the lack of
consideration for the peculiarity of the regional level in those provisions have led to
discrepancy in implementation. The availability of enterprises' representatives affects
the procedures for reaching the regional collective contract and the form it takes.
With the absence of the enterprises' organisation at the regional level in most cases,
the union tends to simplify the procedures and adopt a decentralised way of dealing
with each individual enterprise. The negotiation process is, thus, less emphasised at
the regional level, and the contract is signed at the enterprise level.
Furthermore, being influenced by the union's tradition of administrative role, the
promotion of the regional collective contract system still follows the top-down
pattern and is assessed against the assigned quotas. With few direct connections with
the employees and much noncooperation from the employers, the union fulfills its
task with formality-like contract or compromised terms.
Notwithstanding the above, by moving the collective contract beyond a single
enterprise and engaging the regional union, the regional collective contract system
not only provides a countermeasure for regulating labour relations in the fast
increasing small private enterprises, but also has potentials to overcome the defects
in the Chinese enterprise-level collective contract system by a union which is more
independent of the employer and with cadres who are devoted and have the capacity
to negotiate for the employees' interests.